Want a better deal on your mortgage?

Receive exclusive mortgage rates straight to your inbox

Call us: 0345 305 2540
Need help? 0345 305 2540
Remortgage Calculator Calculator

How does maternity leave affect remortgaging?

REMORTGAGING | 26.05.2022

Remortgaging during maternity leave can cause worry and confusion for many. If you’re having a baby, your financial situation is likely to have changed compared to your last mortgage application. 

Remortgaging during maternity leave doesn’t have to be something to worry about though, as we are here to guide you through how and why being on maternity leave can have an effect on remortgaging and the things you can do to make the process smoother.

Should I tell the lender that I’m pregnant?

Being open and honest with your lender is important so they can help get the right deal for you, and work to your best interest, so yes, you should let them know if you’re pregnant and if you’re on maternity leave. How a lender decides to proceed after knowing this information, will differ from lender to lender. 

Why is being pregnant a factor that lenders consider?

How much you are able to borrow from a mortgage advisor is linked to your household income and outgoings. Your lender has a responsibility to ensure that your monthly income can cover your outgoings, including your mortgage repayments.  If you earn £30,000 a year, when remortgaging, lenders will conduct an affordability check based on this salary. However, when on maternity leave it is often the case that you will be on a reduced amount for some, or the entire period of maternity leave - which then puts you in a completely different financial situation which may have an impact on meeting the criteria to be able to afford the mortgage repayments. However, some lenders may take your assurance that you will return to full-time employment at your previous salary - but you may need to prove you have sufficient funds to tide you over until then. 

What if I’m self-employed?

If you’re self-employed, on maternity leave and wanting to remortgage, things change slightly. If you’re self-employed, lenders will often use your year-end accounts to assess the level of lending you are now eligible for.

Can I wait until I’m back at work before remortgaging?

You don’t have to remortgage as soon as your mortgage term ends, so you are able to wait until you are back from maternity leave, and earning your usual salary. However, be aware that during the interim period, you may be put onto your lender's SVR (standard variable rate), which may mean you could be paying slightly more than you were before.  Once you return to full-time employment and are back on your usual income, you can remortgage to come off this SVR and find a better, more suitable deal. There are also circumstances where you may be able to find a new rate with your existing lender rather than remortgaging.  Lenders will have various approaches to maternity leave, and each applicant will have a different set of circumstances. When remortgaging for maternity leave, using a mortgage advisor or broker will allow you to find the best deal for you and your new circumstances. Here at TaylorMade we will help you through the process, and find the best deals for you, meaning you can focus on yourself and your growing family.
Talk to us

If you're unsure and need some advice just give us a call, our expert team of advisers are available to help you choose the mortgage that is right for you.

0345 305 2540 info@taylormade-finance.co.uk

By clicking on the above link you will be leaving the regulated site of TaylorMade Finance Ltd. TaylorMade Finance Ltd is not responsible for the accuracy of the information contained within the linked site.

TaylorMade Finance Ltd is authorised and regulated by the Financial Conduct Authority.

Complaints:

In the event that you wish to complain, you can contact us by email, telephone or letter.

Our address for this is:
Complaints Officer, TaylorMade Finance Ltd, 4 Church Road, Urmston, Manchester, M41 9BU. Our email address is info@taylormade-finance.co.uk and our telephone number is 0161 776 1089. We will then investigate the issues raised and inform you of our findings. Should you be unhappy with the resolution to your complaint you may contact the Financial Ombudsman Service, who can be contacted at the following address: Financial Ombudsman Service, Exchange Tower, London, E14 9SR.

Email: complaint.info@financial-ombudsman.org.uk
Phone: 0800 0234 567

Your mortgage will be secured against your property.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Our fee for this service is 1.95% of the mortgage balance (minimum £1,295 to a maximum of £2,995 although reduced to maximum £1,995 without debt consolidation). Typically this will be £1,995.